GBP/USD has been quite bullish recently below 1.4050 area after being bounced off the dynamic level of 20 EMA in the process. Recently GBP has been quite positive with the economic reports which helped the currency to counter the impulsive bearish pressure in the pair, economic reports including Current Account showing less deficit at -18.4B from the previous deficit of -19.2B which was expected to be at -24.0B, Final GDP remaining unchanged as expected at 0.4% and Net Lending to Individuals increasing to 5.4B from the previous figure of 4.8B which was better than expectation of being unchanged. Today GBP Manufacturing PMI report is going to be published which is expected to have slight decrease to 54.8 from the previous figure of 55.2. Though a slight decrease is expected a positive economic report will lead to a better impulsive bullish push in the coming days. Meanwhile, this week some high impact GBP economic reports are going to be published including Construction PMI and Services PMI which is also expected to have a good impact on GBP gains in the future. On the other hand, USD has been struggling to keep up with the GBP momentum because of recent worse economic reports. Ahead of the upcoming high impact economic reports to be published on Friday including NFP, Average Hourly Earnings and Unemployment Rate, today USD IBD/TIPP Economic Optimism report is going to be published which is expected to have slight decrease to 55.2 from the previous figure of 55.6 and Total Vehicle Sales report is also expected to decrease to 16.9M from the previous figure of 17.1M. As of the current scenario, positive economic reports of GBP is expected to back the gains in the coming days whereas certain volatility is expected to strike the market due to a high amount of liquidity due to high impact economic reports on the way to be published this week. To sum up, USD is expected to gain momentum over GBP this week, if USD economic reports meet the expectation while GBP expectation is quite negative.
Now let us look at the technical view. The price is currently residing at the edge of 1.4060 area from where it has been rejecting for several times recently and expected to push lower towards 1.3850-1.3950 support area in the coming days. The volatility is still quite high whereas recent impulsive bearish momentum was quite remarkable and expected to continue further as the price remains below 1.4250 with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com
GBP/USD has been quite bullish recently below 1.4050 area after being bounced off the dynamic level of 20 EMA in the process. Recently GBP has been quite positive with the economic reports which helped the currency to counter the impulsive bearish pressure in the pair, economic reports including Current Account showing less deficit at -18.4B from the previous deficit of -19.2B which was expected to be at -24.0B, Final GDP remaining unchanged as expected at 0.4% and Net Lending to Individuals increasing to 5.4B from the previous figure of 4.8B which was better than expectation of being unchanged. Today GBP Manufacturing PMI report is going to be published which is expected to have slight decrease to 54.8 from the previous figure of 55.2. Though a slight decrease is expected a positive economic report will lead to a better impulsive bullish push in the coming days. Meanwhile, this week some high impact GBP economic reports are going to be published including Construction PMI and Services PMI which is also expected to have a good impact on GBP gains in the future. On the other hand, USD has been struggling to keep up with the GBP momentum because of recent worse economic reports. Ahead of the upcoming high impact economic reports to be published on Friday including NFP, Average Hourly Earnings and Unemployment Rate, today USD IBD/TIPP Economic Optimism report is going to be published which is expected to have slight decrease to 55.2 from the previous figure of 55.6 and Total Vehicle Sales report is also expected to decrease to 16.9M from the previous figure of 17.1M. As of the current scenario, positive economic reports of GBP is expected to back the gains in the coming days whereas certain volatility is expected to strike the market due to a high amount of liquidity due to high impact economic reports on the way to be published this week. To sum up, USD is expected to gain momentum over GBP this week, if USD economic reports meet the expectation while GBP expectation is quite negative.
Now let us look at the technical view. The price is currently residing at the edge of 1.4060 area from where it has been rejecting for several times recently and expected to push lower towards 1.3850-1.3950 support area in the coming days. The volatility is still quite high whereas recent impulsive bearish momentum was quite remarkable and expected to continue further as the price remains below 1.4250 with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com
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